MA373 S11 Quiz 2-1

# MA373 S11 Quiz 2-1 - 0 Marc h 1 2009 5000 0 4000 July 1...

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Math 373 Spring 2011 Quiz 2 February 8, 2011 1. Danny, Sandy, and Julia enter into a financial agreement. Today, Danny will pay Sandy 1000. He will also pay Julia 2000 today. At the end of 3 years, Julia will pay Danny 2500. Julia will also pay Sandy 2500 at the end of 4 years. Sandy will pay Danny 1000 at the end of 5 years. Sandy will also pay Julia 2000 at the end of 1 year. Calculate Julia’s annual yield under this agreement.

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2. Kylie has an account at Boing Brokerage House. She has made the following deposits and withdrawals over the last two years. Date Deposits Withdrawals Balance Before Cash Flow January 1, 2009 5000 0

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Unformatted text preview: 0 Marc h 1, 2009 5000 0 4000 July 1, 2009 0 4000 10,000 May 1, 2010 3000 0 9,000 December 31, 2010 0 0 15,000 Calculate Kylie’s annual time weighted return. 3. Ravi loans 1000 to Katie at an annual effective rate of 8%. Katie agrees to repay the loan with payments of 300 at the end of year 1 and a payment of P at the end of year 3. Calculate P. 4. Steve loans 12,000 to Matt. Matt agrees to repay the loan with annual payments of 4500 for the next 3 years. Steve reinvests each of Matt’s payments at an annual effective rate of 4%. Determine Steve’s annual rate of return on this loan taking into account reinvestment. 5....
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MA373 S11 Quiz 2-1 - 0 Marc h 1 2009 5000 0 4000 July 1...

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